(a)    This section does not apply to life insurance, health insurance, and annuities.

(b)    Except to the extent provided for in an applicable filing with the Commissioner as provided by law, an insurer, employee or representative of an insurer or insurance producer may not pay, allow, give, or offer to pay, allow, or give directly or indirectly as an inducement to insurance or after insurance has become effective:

(1)    a rebate, discount, abatement, credit, or reduction of the premium stated in the policy;

(2)    a special favor or advantage in the dividends or other benefits to accrue on the policy; or

(3)    any valuable consideration or other inducement not specified in the policy.

(c)    An insured named in a policy or an employee of the insured may not knowingly receive or accept directly or indirectly a rebate, discount, abatement, credit, reduction of premium, special favor, advantage, valuable consideration, or inducement described in subsection (b) of this section.

(d)    (1)    Except as otherwise provided by law, a person may not knowingly offer, promise, or give any valuable consideration not specified in the policy, except for educational materials, promotional materials, or articles of merchandise that cost no more than $50.

(2)    A person may not make receipt of any educational materials, promotional materials, or articles of merchandise under this subsection contingent on the sale or purchase of insurance.

(e)    (1)    An insurer may not make or allow unfair discrimination between insureds or properties having like insuring or risk characteristics in:

(i)    the premium or rates charged for insurance;

(ii)    the dividends or other benefits payable on the insurance; or

(iii)    any of the other terms or conditions of the insurance.

(2)    Notwithstanding any other provision of this section, an insurer may not make or allow a differential in ratings, premium payments, or dividends for a reason based on the sex, physical handicap, or disability of an applicant or policyholder unless there is actuarial justification for the differential.

(f)    This section does not prohibit an insurer from:

(1)    paying commissions or other compensation to licensed insurance producers;

(2)    paying commissions to licensed insurance producers on a variable basis on policies issued to qualified exempt commercial policyholders, as defined in § 11–206 of this article, if:

(i)    the payment of the commission to the insurance producer on a variable basis results in a lower total cost of the policy to the qualified exempt commercial policyholder; and

(ii)    the insurance producer receiving the commission has agreed to the specific level of commission to be paid on the policy; or

(3)    allowing or returning to its participating policyholders, members, or subscribers lawful dividends, savings, or unabsorbed premium deposits.